As the Trump administration embarks on long-overdue measures to counter economic threats from China, one of the primary conduits for abuse of the U.S. financial system continues to grow unchecked. The Chinese state-linked companies, transnational criminal organizations, and corrupt officials the U.S. now accuses of wrongdoing often rely on so-called “anonymous companies” to conceal illicit activities. Congress came close to banning them last year: Bipartisan legislation to do so now could provide an unexpected boost to the president’s agenda during a critical phase.

Anonymous companies, often referred to as shell companies, are incorporated in jurisdictions that do not require the disclosure of useful information about who really owns or controls them, in order that they can be used for money laundering or other financial crimes. Astonishingly, by far the biggest such jurisdiction is the United States itself, which continues to drag its feet on introducing a corporate beneficial ownership register — unlike a growing number of its democratic allies. Meanwhile, U.S. law enforcement agencies are often powerless to find out who controls the legal entities being used to conceal illicit funds within their jurisdiction.